CZ tries to save crypto
Binance, a cryptocurrency exchange, says in a tweet about new details on its industry recovery fund to help struggling companies after FTX’s bankruptcy.
Binance has committed $1 billion to the fund for recovery efforts. It may increase that amount to $2 billion at a point in time in the future “if the need arises,” the company added.
The $50 million came from investors with experience in the cryptocurrency market, including Jump Crypto, Polygon Ventures, and Animoca Brands.
The CEO of Binance, Changpeng Zhao, shared the public wallet address where the company has deposited $1 billion worth of its own BUSD stablecoin. He said the company is committed to making its finances transparent.
BUSD is a stablecoin issued by blockchain infrastructure company Paxos and is authorised and regulated by the New York State Department of Financial Services. Binance, a cryptocurrency exchange, has created a fund in an attempt to keep the industry afloat after FTX filed for bankruptcy earlier this month.
CZ started “avalanche” that wiped FTX
Zhao is becoming a new figure, seen as a savior for the ailing crypto industry. That’s because he fills the void left by Bankman-Fried. FTX had bought or invested in a number of struggling crypto companies – from Voyager Digital to BlockFi – before they collapsed.
Binance’s CEO posted a tweet that drew attention to a CoinDesk report raising questions about FTX’s accounting. This was one of the factors that led to FTX’s failure.
The company’s lawyer delivers a harsh verdict at the first hearing in bankruptcy court on Tuesday, saying FTX is being run like a personal kingdom.
Binance stating that the vehicle is not an investment fund. Fund’s main target is to support companies and projects that are facing short-term financial difficulties through no fault of their own. Zhao has said that it is his intention to prevent further cascading effects stemming from the collapse of FTX.
Binance said that the program will most likely last around six months. We are currently seeking investors to contribute additional funds.
Binance is willing to accept investments in different forms, including tokens, cash, and debt. We expect that each situation will require its own specific solution.
Binance said that around 150 companies have already applied to the fund for support.
The news didn’t have a big impact on the crypto markets. In the past hour, bitcoin prices increased by about 0.2%. Meanwhile, ether prices remained unchanged.
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